Offshore is a term used to describe the process by which a company sets up its offices or its services and practices in foreign nations? Many United States companies have opened several branches in different countries including Africa. This practice has been on the rise in the recent past, and it seems not to end shortly because competition in the market is real. There are vast amounts of commodities from different companies throughout the world and hence there is the need for quality among other things. Offshore companies are associated with the best manufacturing practices due to the pressure from the mother country on the necessity of producing quality products. Wan-mart is an example of United States companies that have established themselves in foreign countries. Among the countries the company has invested are China and India. All these expansions are meant to remain relevant in the market at this stage of rapid industrialization. The company specializes in the distribution of commodities to various parts of the word. Wal-mart offshore activities are of importance to American people.
Before any company is allowed to carry on offshore activities, some issues must first be sorted out with the government. The government grants the permission for offshoring and not the might of the company. If the company meets the minimum threshold, it is then allowed to proceed with its activities. Some of the issues that must be sort out include the business purpose of the expansion. If the development does not benefit America in any way, the company is denied that opportunity. Some of the reasons used by these companies to explain their expansion agenda are the need to produce goods directly in the specific market (Alvin et al. 2009). This creates customer trust, and in the process, the sales of the company are boosted considerably. Optimum sales are equivalent profits which is the long run has the positive impact on the economy of United States. Consequently, these companies can at times argue that the governments of the nations where they intend to invest have made a special request on the establishment of the industry in their soil to create employment to the citizens. Others argue that the whole issue is on the lowered cost of production and hence maximum profits. The companies are also forced to explain the quality of products they intend to produce to see if they meet the conditions for production in foreign nations.
Off shoring is however associated with some problems. Individuals in the second country who go to seek employment from the facility (Bottin, Ernst, & Luebker, 2007) feel the problems. Though labor is usually mechanized, there is still a great need for human energy. The problem comes in where payment time comes. E.g., in India, Wal-mart workers have complained severally over unpaid dues. This is shocking owing to the massive amounts of money the company makes regarding profit. It is unfortunate that such a developed country does not prioritize the needs and rights of its workers.
Prison labor has also been a challenge for the companies. The facilities are investing in cheap labor activities such as the use of inmates. These people require no payment, and it is like they work just to help the companies in their production activities. This is against human rights. Prisoners also have their rights and hence should not be subjected to forced labor. Prisoners are meant to be corrected and not to be punished using these cruel forms of punishment. The way-mart company has also been involved in these mal-practices that have eventually resulted in the production of low-quality products that do not meet the market required conditions.
Child labor is another problem that is continuously affecting the production. It is unfortunate that these companies are subjecting young children below sixteen years of age. These children are continually subjected to forced labor, or even they are paid, the money is far much little compared to the amount of work they are involved in. It is against the norms of every society for children who should be busy in their education to take part in such activities. Even at will, it is not to employ them, but if unavoidable, they are also supposed to be given some right amount of money in reward for their labor.
Lack of insurance covers is a challenge that is associated with these foreign companies. The companies do not provide medical covers for their employees unless they are from their native land. This has proved to be a problem remembering no one is entirely immune to existing killer diseases. The workers are therefore forced to go an extra mile to cater for their health bill. It is supposed to be the duty of the companies to offer this insurance covers to its employees. The insurance covers should also cover for accidents of the workers during their line of duty.
Government regulations can only solve all these mentioned challenges. The government has to ensure that the rights of its citizens are not violated. Before issuing a business permit to these companies, the respective governments should carry out an independent audit on the operations of the companies elsewhere and their history as well (Neumark, Zhang, & Ciccarella, 2007). It is the duty of the government to ensure that all citizens are covered especially to cater for their health issues. The parent companies are the heart of all these activities. It is likely that some of these issues happen without their notice. The companies are aware of the dangers of engaging in forced labor and in the process set up funds to cater for labor. For example, when there were complains of unpaid dues in India, it is the Wil-mart bosses in the U.S who came to their rescue with the aim of protecting the business. Involving in forced and child labor is unethical and should be discouraged. Children should instead be taken to a school where they can learn and prepare themselves for a better tomorrow. Mistreatment of workers by underpaying them eventually leads to loss of quality of the products since they lack the motivation to keep on working. Inmates, on the other hand, should not be subjected to these hard tasks. If they should, let it be to help but not to work.
This crisis can be a thing of the past if the management can put all measures into consideration. Before being allowed to set foot in a foreign country, it should be able to prove it financial capabilities through an internal audit. The company should also be able to account for the security of its workers. Children should never be employed as workers in any company. In case all ethics are out in place, the Wal-mart set of companies have a chance of establishing in many more states and the long run, off shoring will have a positive impact on the economy of United States.
Alvin Hansen Symposium on Public Policy, Bhagwati, J. N., Blinder, A. S., & Friedman, B. M. (2009). Offshoring of American jobs: What response from U.S. economic policy?Cambridge, MA: MIT Press.
Bottin, N., Ernst, C., & Luebker, M. (2007). Economic and Labour Market. Retrieved from http://file:///C:/Users/user/Downloads/Documents/wcms_113922.pdf
Neumark, D., Zhang, J., & Ciccarella, S. (2007, August 14). The effects of Wal-Mart on local labor markets. Retrieved from https://www.socsci.uci.edu/~dneumark/walmart.pdf
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